Asda Records First Sales Rise in Over Two Years

By the Editorial Team · Wednesday, September 16, 2026

Asda reported a 0.1% increase in sales to £4.17 billion for the 12 weeks ending September 6, marking its first growth in over two years amid ongoing recovery efforts. Despite this progress, the retailer faces continued challenges from debt, competition, and operational issues, with its turnaround still in early stages and market share slightly declining.

Asda has posted its first sales increase in over two years, marking a modest but significant step in its ongoing recovery efforts. The British supermarket chain reported a 0.1% rise in sales to £4.17 billion in the 12 weeks ending September 6, reversing a prolonged period of decline since March 2024.

The Leeds-based retailer has faced challenges since its acquisition by the billionaire Issa brothers in 2021, a deal partially financed by private equity firm TDR Capital. Asda has struggled with heavy debt burdens, intensified competition from discounters Lidl and Aldi, and substantial operational disruptions linked to an IT system upgrade. These factors contributed to a 3.4% decline in total sales to £25.9 billion in the financial year ending in 2025, alongside widening pre-tax losses that increased from £599 million in 2024 to £989 million.

Allan Leighton, who returned as CEO in November 2024, acknowledged that the company is still in the early stages of its turnaround, estimating the recovery to be roughly one-third complete. Under his leadership, Asda has focused on cutting prices and enhancing its online shopping capabilities to attract customers. Despite the recent sales uptick, the supermarket’s market share slipped to 11.5% from 11.8% a year earlier, according to data from industry research firm Worldpanel.

Leighton emphasized that the revival strategy will not deliver immediate results and cautioned that price reductions will exert pressure on profits. He also pointed to external factors affecting consumer spending, such as this summer’s heatwave, which impacted crop yields and, consequently, pricing pressures. "The biggest thing is consumer sentiment. How do people feel? Do they feel as if they want to spend? Do they have the money to spend? That’s always been the driver of it," Leighton stated.

An Asda spokesperson described the sales growth as an important milestone driven by investments aimed at strengthening the store’s value proposition, lowering prices, and improving the overall shopping experience. They added that the company remains in the "foothills of recovery" and has more work to do to build a stronger business for the long term.

Meanwhile, rivals in the UK grocery market showed stronger sales performance during the same period. Tesco and Sainsbury’s recorded sales increases of 1.7% and 2.9%, respectively, while Marks & Spencer’s grocery division experienced a notable surge with sales rising by 14.8%.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.